Convert the accounting processing of expenditures belonging to cost items into expenses to achieve the purpose of pre-tax deduction for the current period, or convert the expenditures belonging to expense items into cost. The purpose of controlling the pre-tax deduction ratio and current profits.
Reason: Because the cost consists of direct labor, direct materials, and manufacturing overhead, and direct labor, manufacturing overhead, selling expenses, and administrative expenses are easily confused, it should be This is a flaw in this operation. In addition, freight and labor handling included in direct materials are also easier to integrate with administrative expenses.
2. Cost capital (product) mutualization:
Account processing that belongs to expense items If it becomes an asset, it will be deducted from the depreciation before tax; or the expenses belonging to asset accounts will be directly recognized as expenses and deducted before tax in the current period.
Reason: Some asset values themselves include expenses, so other expenses are integrated into the asset value, and vice versa; in addition, asset repairs, borrowing costs, etc. themselves have to confirm the boundaries manually. Virtualization; the basis for recognition of fixed assets and intangible assets is easier to virtualize.
3. Expense name conversion:
Deduct part of the excess amount of expenses with a rate limit before tax Convert it to other expenses with loose restrictions or unlimited restrictions in order to achieve the purpose of full pre-tax deduction or reduce relevant taxes.
Reason: Expense confirmation is based on invoices, and invoices are easy to be fictitious.
4. Expense accrual/deferral/selective allocation:
In order to control the current pre-tax The size of the profit, the accrual of expenses to defer tax, or the choice of deferred recognition for exaggerating the current period's profits for other purposes (such as equity transfer price, current performance). Selectively allocate expenses: adjust the allocation ratio on each expense item to control the taxes and fees caused by the item (such as adjusting land value-added tax).
5. Cost item conversion:
Convert items that can be carried forward in the current period into Other items that cannot be carried forward as costs, or vice versa.
6. Costs advanced, delayed recognition/selective apportionment:
When carrying forward more costs in the current period, or less, they will be made up in the next period. or choose the cost allocation method to achieve these two purposes.
Reason: The cost carry forward regulations are vague.
7. Advance income, delay recognition/selective apportionment:
Carry forward more or less income in the current period and make up for it in the next period , or choose revenue apportionment to achieve these two purposes.
Reason: The revenue recognition regulations are vague.
">8. Conversion of income items:
Adjust the total income among various income items, such as converting main business income into other business income or non-operating income Revenue, in order to achieve the purpose of controlling turnover tax or highlighting the performance of the main business.
9. Income liability/expense assetization:
Temporarily record income as other accounts payable, and temporarily record expenditures as other receivables, so as to postpone tax payment or not pay tax.
10 .Inflated increase/decrease in income, costs and expenses:
Artificial inflated increase/decrease in income or costs and expenses, which is the basis for error adjustment and reaches the tax period Delay or other purposes.
11. Transfer pricing:
Artificial price processing with external transactions , reduce or increase the price, and make up for each other's small treasury in the form of other expenses to achieve the purpose of tax avoidance.
12. Asset and responsible name conversion:
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Change the asset class name of fixed assets, change its depreciation life, link accounts receivable to other accounts receivable, and link accounts received in advance to other payables to avoid taxes. .
13. Virtual transaction method:
Accounting with non-existent transaction contracts, resulting in fundsThe outflow increases the expenses of the current period and achieves the purpose of reducing income tax.
14. Expenses directly charged to income method:
Because income involves turnover tax, it is immediately before the income is recognized. The costs of each other are directly offset to achieve the purpose of controlling turnover taxes, such as: commercial discounts are converted into lower selling prices in subsequent periods
15. Reorganization and Transfer Law:
Use equity transfer, asset transfer, debt restructuring, etc. to transfer funds or income to achieve tax avoidance.16. Corporatization of private expenses:
Converting private expenses into company expenses can Lowering personal income tax can also increase the purpose of deducting expenses before corporate income tax. For example: personal car gas and rent fees are handled by the company
17. Income/cost/expense transfer method:
Separating the Civil Code and transferring income, costs and expenses to other companies or subsidiaries can achieve the purpose of differential tax rate treatment. For example: filling and reimbursing the expenses of each company, and compensating the small treasury to achieve their own balanced and limited expenses
18. Inflated increase/decrease transfer process:
Work hard on the circulation process, add one more circulation process, and one more income amount; the deductible range of expenses with respective ratio restrictions will be increased, or part of the expenses can be virtualized.
19. Use of financial instruments method:
Use financial instruments such as stocks, futures, and foreign exchange to carry out difficult-to-use financial instruments. Transactions that control future prices; control the price at the time of transaction at a low level, and become investment income from financial instruments after the transaction, avoiding part of the turnover tax.
20. Group operation:
Balance the expenses of each company in the group to achieve overall planning tax purposes. For example: If a software company is established within a group, there is no limit on salary deduction of 1,600 yuan. If other companies’ personnel are staffed in the company, their salaries will be paid in that company, and they will work in other companies, etc.
21. Others:
Convert the loan into a deposit from another company to avoid the tax on interest.
